1. LEGAL DOCUMENTS ARE EFFECTIVE FROM 01/05/2021
1.1. Decree No. 21/2021/NĐ-CP on elaborating to the Civil Code regarding security for fulfillment of obligations
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Name of legal document: Degree No. 21/2021/NĐ-CP issued on 19/03/2021 by the Government on elaborating to the Civil Code regarding security for fulfillment of obligations (referred to as the “Decree No. 21/2021/NĐ-CP”).
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Effective date: 15/05/2021.
Some contents should be noted:
· Firstly, stipulating on collateral for security for obligation fulfillment
Specifically, Article 8 of Decree No. 21/2021/NĐ-CP stipulates: “Article 8. Collateral for security for obligation fulfillment
Collateral for security for obligation fulfillment includes:
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Current properties or off-plan properties, except for cases where the Civil Code or other relevant laws forbid sale, transfer or other change of ownership at the time of establishing security contracts, security measures;
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Properties sold under property sale agreements with retention of ownership;
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Properties considered as subjects of obligations under infringed bilateral contracts in case of lien measures;
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Properties under general public’s ownership if prescribed by relevant laws.”
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Secondary, stipulating on effectiveness of security contracts
Specifically, Article 22 of Decree No. 21/2021/NĐ-CP stipulates: “Article 22. Effectiveness of security contracts
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Security contracts certified, verified under the Civil Code or relevant law provisions or at request shall enter into force from the date on which they are certified, verified.
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Security contracts not specified under Clause 1 of this Article shall enter into force from the date agreed upon by all parties. In case no agreement is made, security contracts shall enter into force from the date on which the contracts are signed.
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In case collateral is withdrawn under agreement, sections of security contracts that relate to the withdrawn collateral shall no longer be effective; in case collateral is added or replaced, revision of security contracts relating to this collateral shall be implemented according to the Civil Code and other relevant law provisions.
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Security measures that have not entered into effect against a third individual shall not alter or nullify security contracts.”
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Thirdly, stipulating on Effects of security measures against a third individual
Specifically, Article 33 of Decree No. 21/2021/NĐ-CP stipulates: “Article 23. Effects of security measures against a third individual
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Security measures shall only take effect against a third individual when security contracts have legally entered into force.
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In case security measures require registration according to the Civil Code or other relevant law provisions or are registered under agreement or at request of secured parties, registration shall be carried out in competent agencies as per relevant law provisions when security measures take effect against a third individual.
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For cases not specified under Clause 2 of this Article, effect against a third individual in case of pledge of property, deposit or security collateral measure shall start from the date on which secured parties hold collateral. “holding of collateral” specified under this Clause refers to when secure parties directly manage and control collateral or when other individuals manage collateral according to agreements or regulations and law and secured parties control the collateral.
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In case collateral under security measures specified under Clause 3 of this Article is given to other individuals for management, effect against a third individual of security measures shall start from the date on which:a) Pledgees, depositees or security collateral receiving parties hold collateral;b) Individuals managing collateral receive collateral directly from pledgers, depositors or security collateral making parties;c) Security contracts take effect when other individuals are directly managing properties which are used as pledge, deposit or security collateral.
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Effect against a third individual of escrow deposit measure shall start from the date on which escrow deposit is sent to escrow accounts in credit institutions where escrow deposit is made.”
1.2. Circular No. 01/2021/TT-NHNN regulating on domestic issuance of promissory notes, treasury bills, certificates of deposit, bonds by credit institutions, foreign bank branches
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Name of legal document: Circular No. 01/2021/TT-NHNN issued on 31/03/2021 by the State Bank regulating on domestic issuance of promissory notes, treasury bills, certificates of deposit, bonds by credit institutions, foreign bank branches (referred to as the “Circular No. 01/2021/TT-NHNN”).
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Effective date: 17/05/2021.
Some contents should be noted:
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Firstly, regulating the face value of valuable papers.
Specifically, Article 8 Circular No. 01/2021/TT-NHNN stipulates: “Article 8. Face value of valuable papers
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The face value of a valuable paper is 100,000 (one hundred thousand) Viet Nam Dong or a multiple of 100,000 (one hundred thousand) Viet Nam Dong.
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The face value of valuable papers (except bonds) issued in the form of pre-printed certificates or under agreement issued by credit institutions, foreign bank branches with buyers.
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The face value of a bond issued in the form of a certificate is pre-printed on the bond.
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The face value of the valuable paper issued not in the form of a certificate is agreed upon by the issuing credit institution or foreign bank branch with the buyer. ”
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Secondly, stipulating the time limit, issuance date and maturity date of the valuable paper.
Specifically, Article 10 of Circular No. 01/2021/TT-NHNN stipulates: “Article 10. Time limit, issuance date and payment due date of valuable papers
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Bonds with a time limit of one year or more, with a specific term prescribed by the credit institution. Bonds that are issued in the same batch and the same term are recorded on the same date of issue and the same date of maturity.
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Time limit, date of issue and due date for promissory notes, treasury bills and certificates of deposit shall be stipulated by credit institutions, foreign bank branches. ”
1.3. Circular No. 02/2021/TT-NHNN guiding foreign currency transactions on the foreign currency market by credit institutions licensed to conduct foreign exchange activities
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Name of legal document: Circular No. 02/2021/TT-NHNN issued on 31/03/2021 by the State Bank guiding foreign currency transactions on the foreign currency market by credit institutions licensed to conduct foreign exchange activities (referred to as the “Circular No. 01/2021/TT-NHNN”).
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Effective date: 17/05/2021.
Some contents should be noted:
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Firstly, regulating on the transaction currency and the exchange rate.
Specifically, Article 5 of Circular No. 02/2021/TT-NHNN stipulates: “Article 5. Currency of the transaction and exchange rate
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An authorized credit institution must prescribe the types of foreign currency transacted at the credit institution.
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The spot exchange rate between VND and USD in a spot transaction and a spot transaction in a swap transaction is determined on the basis of the central exchange rate announced by the State Bank on the date of the transaction and the amplitude range specified by the State Bank.
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The forward exchange rate between the Viet Nam Dong and the US dollar in a forward transaction or a forward transaction in a swap transaction shall be agreed upon by the parties to the transaction but must not exceed the rate determined on the basis:a) The spot exchange rate on the transaction date;b) The difference between the two current interest rates is the refinancing rate announced by the State Bank and the US dollar target rate of the Federal Funds Target Rate. If the US dollar target interest rate is in the range, the lowest interest rate within that range will be applied.c) Term of the transaction.
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The exchange rate between Viet Nam Dong and foreign currencies other than the US dollar and the exchange rate between those foreign currencies in foreign currency transactions shall be agreed upon by the parties.
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Authorized credit institutions must post up spot rates between Viet Nam Dong and foreign currencies in transactions with customers at foreign currency transaction locations of the authorized credit institutions and on the official website (if applicable). Authorized credit institutions conducts transactions with customers at the listed exchange rate, unless the two parties agree otherwise on the applicable exchange rate at the time of transaction.”
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Secondly, Specifically, Article 8 of Circular No. 02/2021/TT-NHNN stipulates: “Article 8. Transaction fees
Authorized credit institutions are not allowed to charge transaction fees for foreign currency transactions. ”
1.4. Circular No. 03/2021/TT-NHNN amending and supplementing a number of articles of the Circular No. 01/2020/TT-NHNN dated March 13, 2020 of the Governor of the State bank of Vietnam regulations debt rescheduling, exemption or reduction of interest and fees, retention of debt category to assist borrowers affected by covid-19 pandemic
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Name of legal document: Circular No. 03/2021/TT-NHNN issued on 02/04/2021 by the State Bank amending and supplementing a number of articles of the Circular No. 01/2020/TT-NHNN dated March 13, 2020 of the Governor of the State bank of Vietnam regulations debt rescheduling, exemption or reduction of interest and fees, retention of debt category to assist borrowers affected by Covid-19 pandemic (referred to as the “Circular No. 02/2021/TT-NHNN”).
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Effective date: 17/05/2021.
The content should be noted: amending and supplementing regulation on reduction and exemption of interest and/or fees.
Specifically, Clause 3 of Article 1 stipulates: “Article 1. Amending and supplementing a number of articles of Circular No. 01/2020/TT-NHNN
…
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Amending and supplementing Article 5 as follows:
“Article 5. Reduction and exemption of interest and/or fees
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Credit institutions and foreign bank branches shall decide on the exemption or reduction of interests and fees according to internal regulations for the outstanding balance of debts arising before June 10, 2020 from credit extension activities. (except for the purchase and investment of corporate bonds) whose obligations to repay principal and / or interest are due during the period from January 23, 2020 to December 31, 2021 and the customer has no ability to repay principal and / or interest on time according to contracts or agreements due to declining revenue and income due to the impact of Covid-19 pandemic.
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The exemption or reduction of interests and fees for customers according to the provisions of this Circular will be implemented until December 31, 2021.””
1.5. Decision No. 649/QĐ-NHNN on the announcement of administrative procedures to be abolished in the monetary operation sector performed at the One-Stop Department under the jurisdiction of the State Bank of Vietnam
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Name of legal document: Decision No. 649/QĐ-NHNN issued on 15/04/2021 by the State Bank Decision No. 649/QĐ-NHNN on the announcement of administrative procedures to be abolished in the monetary operation section performed at the One-Stop Department under the jurisdiction of the State Bank of Vietnam (referred to as the “Decision No. 649/QĐ-NHNN”).
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Effective date: 17/05/2021.
The content should be noted: Annul the procedures for approval of plan for public bond issuance of credit institutions.
Specifically, ADMINISTRATIVE PROCEDURES TO BE ABOLISHED IN THE MONETARY OPERATION SECTOR UNDER THE JURISDICTION OF THE STATE BANK OF VIETNAM (Issued together with Decision No. 649/QĐ-NHNN dated April 15, 2021 of the Governor of the Bank State) stipulates:
“
|
No. |
Number of administrative procedure dossier |
Name of administrative procedure |
The name of the legal document stipulates the abolition of administrative procedures |
Sector |
Implementing agencies |
|
01 |
1.001754 |
Procedures for approval of plan for public bond issuance of credit institutions |
Circular No. 01/2021/TT-NHNN dated March 31, 2021 of the Governor of the State Bank of Vietnam prescribing issuance of promissory notes, treasury bills, deposit certificates and domestic bonds by credit institutions and foreign bank branches |
Monetary operation |
Money Policy Department |
”
2. LEGAL DOCUMENTS ARE ISSUED IN 04/2021
2.1. Circular No. 04/2021/TT-NHNN on refinancing of credit institutions after credit institutions for VIETNAM AIRLINES JSC and the restructuring of repayment term, keeping intact debt group, setting up a risk provision for debts of VIETNAM AIRLINES JSC due to the influence of Covid-19pandemic
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Name of legal document: Circular No. 04/2021/TT-NHNN dated April 5, 2021 of the Governor of the State Bank of Vietnam on refinancing of credit institutions after credit institutions for VIETNAM AIRLINES JSC and the restructuring of repayment term, keeping intact debt group, setting up a risk provision for debts of VIETNAM AIRLINES JSC due to the influence of Covid-19pandemic (referred to as the “Circular No. 04/2021/TT-NHNN”).
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Effective date: 05/04/2021.
Some content should be noted:
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Firstly, stipulating on refinance amount.
Specifically, Article 4 of Circular No. 04/2021/TT-NHNN stipulates: “Article 4. Refinance amount
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The maximum refinance amount for each VNA loan must not exceed the loan amount of each VNA loan under the refinancing application form of a credit institution.
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The total refinance amount for credit institutions is maximum of 4,000 billion dong (four thousand billion dong).”
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Secondly, stipulating on refinance interest rate.
Specifically, Article 5 of Circular No. 04/2021/TT-NHNN stipulates: “Article 5. Refinance interest rate
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The refinance interest rate is 0%/year, applicable to the refinancing term and the refinancing term (if any).
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The interest rate applicable to overdue refinancing principals is equal to 150% of the refinancing interest rate announced by the State Bank from time to time at the time when the refinancing is transferred overdue.”
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Thirdly, stipulating on collateral.
Specifically, Article 6 of Circular No. 04/2021/TT-NHNN stipulates: “Article 6. Collateral
The State Bank refinancing without collateral for credit institutions.”
2.2. Decision No. 617/QĐ-NHNN on the announcement of new administrative procedures issued in the monetary operation sector, performed at the One-door Department under the jurisdiction of the State Bank of Vietnam
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Name of legal document: Decision No. 617/QĐ-NHNN issued on 06/04/2021 by the State Bank on the announcement of new administrative procedures issued in the monetary sector, performed at the one-door department under the jurisdiction of the State Bank of Vietnam (referred to as the “Decision No. 617/QĐ-NHNN”).
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Effective date: 06/04/2021.
The content should be noted: Stipulating procedures for refinancing approval for credit institutions after the credit institution lends to VIETNAM AIRLINES JSC.
Specifically, Item 1, Part II New administrative procedures issued in the monetary sector, performed at the one-door department under the jurisdiction of the State Bank of Vietnam, issued together with Decision No. 617/QD-NHNN stated: “1. Procedures for refinancing approval for credit institutions after credit institutions lend to VIETNAM AIRLINES JSC.
– The order of execution:
Step 1: The credit institution sends 01 application for refinancing loan according to Appendix I issued together with Circular No. 04/2021/TT-NHNN dated April 5, 2021 to the head office of the State Bank.
Step 2: Within 12 working days from the date of receipt of the request for refinancing loan from the credit institution, the State Bank of Vietnam shall issue a decision to refinance the credit institution, in case of disagreement, the State Bank shall issue a written document clearly stating the reason to the credit institution.
– The way to perform:
+ Head office of the State Bank (directly at the One-Door Department); or
+ Postal service.
– Dossier composition: Application for refinancing loan according to Appendix I issued together with Circular No. 04/2021/TT-NHNN.
– Number of dossier: 01 set.
– Processing term: 12 working days from the date of receipt of complete and valid dossier.
– Subjects of administrative procedures: Credit institutions.
– Administrative procedure settlement agency: State Bank of Vietnam (Monetary Policy Department).
– Result of the implementation of administrative procedures: Decision on refinancing.
– Fees and charges: No.
– Name of application form, declaration form: Re-financing application form according to Appendix I issued together with Circular No. 04/2021/TT-NHNN.
– The legal basis of administrative procedures:
+ Law on the State Bank of Vietnam dated June 16, 2010;
+ Law on Credit Institutions dated June 16, 2010; Law amending and supplementing a number of articles of the Law on Credit Institutions dated November 20, 2017;
+ Circular No. 04/2021/TT-NHNN dated April 5, 2021 of the Governor of the State Bank of Vietnam on refinancing of credit institutions after credit institutions for VIETNAM AIRLINES JSC and the restructuring of repayment term, keeping intact debt group, setting up a risk provision for debts of VIETNAM AIRLINES JSC due to the influence of Covid-19pandemic./ .”
